XBOX is making wholesale changes to its gaming division, including studio closures and selling off some first-party studios, and State of Decay 3 developer Undead Labs is among those affected.
State of Decay 3 has been in development under the Microsoft umbrella for years, but rumblings of changes at XBOX have emerged as earth-shattering tremors that are resulting in major reconstruction of XBOX’s gaming division.
For all the details on how this impacts Undead Labs’ eagerly anticipated title, Insider Gaming has you covered.
Has State of Decay 3 Been Cancelled?
No, State of Decay 3 has not been cancelled, and is still on course to be released. However, the exact release date is yet to be announced.
Initially announced at the Xbox Games Showcase in July 2020, it’s been a long wait, but the latest news was that fans can expect the title to land at some point in 2027.
However, a precise date is yet to be set, and it remains to be seen whether the changes with Undead Labs will impact the release window at all.
It shouldn’t provide too much difficulty, however, particularly as State of Decay 3 was already confirmed to be releasing on XBOX Series X|S, PC, and PlayStation 5.
What’s Happened to Undead Labs?
Undead Labs has separated from XBOX and is no longer a first-party studio, as confirmed in an announcement on July 6, 2026.
The studio became part of the XBOX umbrella in 2018 and has not released a title in the eight years since, though the team has been hard at work developing the next entry in the State of Decay franchise.
The separation from Undead Labs and XBOX should not impact the release of State of Decay 3, as the change has come very late in development, but it remains to be seen what happens in the long term.
The good news, however, is that fans can continue to look forward to the upcoming release, and Undead Labs has retained control of the State of Decay IP, too.
Check out the State of Decay 3 gameplay trailer below.
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